What are Group Benefits?
Group benefits are insurance policies that covers a group of people who are employees of a common employer, members of societies or professionals in a common group. Group coverage reduces the insurance carrier’s risk by creating a pool of people to insure who are together for reasons other than obtaining insurance resulting in lower premiums. Group benefits can be an incentive to attract and keep great employees.
Major Types of Group Benefits
Group Health Insurance
Group health insurance coverage is offered to eligible employees of the company ( and in most cases their’ family members) as a benefit of working for that company. A group health insurance plan is a major part of many employee benefits packages that employers provide for their employees.
Group Life Insurance
Group life insurance (also known as wholesale life or institutional life insurance) is a term insurance policy that covers a group of employees of a company, members of an association or union, or members of a pension or superannuation fund. The underwriter typically considers the size, turnover, and financial strength of the group rather then the individual insurability of the group.
Group Disability Insurance
Group Disability Insurance is a type of group insurance that provides regular income replacement payments to covered employees in the event of an eligible disability resulting from illness or injury. Coverage types offered are short-term disability (STD) or long-term disability (LTD).